02.04.202011:01:00UTC+00Majority Of UK Firms Face Cash Flow Crisis: BCC

The majority of UK firms have three months' cash in reserve or less, according to a survey conducted by the British Chambers of Commerce, released Thursday.

The new Coronavirus Business Impact Tracker painted a concerning picture for business communities affected by pandemic.

About 18 percent reported less than a month's worth of cash in reserve, while 44 percent reported only 1 to 3 months' worth of cash in reserve.

Further, around 32 percent of respondents said that they were planning to furlough between 75 to 100 percent of their workforce over the next week.

Consequently, more than a quarter of firms are set to use the government scheme that promise to pay 80 of employee's salary up to GBP 2,500 a month.

Firms also reported a sharp and significant decline in domestic and overseas revenues. The survey was conducted between March 25 and 27 covering 600 businesses.

BCC Director General Adam Marshall, said "The Coronavirus pandemic has taken a heavy toll on business and economic activity across the UK."